From Fortune Magazine:

“Skimpflation” and “shrinkflation” are changing consumer shopping habits in 2023. Survey found cheaper, smaller products with no price cuts. Consumers feel the change in groceries, toiletries, cosmetics, and food and household items. This caused a 4.1% increase in spending, but Brits cut back on dining out and garments due to economic pressures.

Deals drew consumers to discount supermarkets, showing a 15.5% share of all grocery spending in 2023 vs. 14.5% in 2022. The news was a blow for big businesses like Unilever and Nestlé, accused of doing little to lower prices. French retailers are pressing forward by holding off or reducing price increases to help consumers fight inflation.

Travel and entertainment businesses have profited while restaurants and retail suffered. Pop-culture events like the “Barbenheimer” and Taylor Swift tour gained billions. Takeaway food, streaming services, and pubs also saw increased business. Brits cut back on new clothes and home improvements amid rising inflation and household expenses, prioritizing spending on moments of joy and shared experiences.

Inflation in U.K. cooled down but still remains high at 4.6%, with the economy shrinking. It’s anticipated that lower interest rates next year could ease pressure on households and boost the economy. Despite an overall optimistic forecast, the true impact of these economic trends remains to be seen.



Read more: Barclays: Shrinkflation, skimpflation took over supermarkets in 2023